The latest housing market survey revealed 35 per cent more Chartered Surveyors reported a rise than a fall in August, up from 30 per cent in July.
RICS estate agents reported that price rises are being driven by a combination of would-be-buyers returning to the market and limited availability of new property coming onto the market.
The interest rise in August and the prospect of further tightening has dampened surveyor confidence, though it remains at high levels.
Expectations for price rises over the next three months have eased back slightly. Excluding the very minor blips in January and March, this marks the first significant decline in confidence levels since September 2005.
RICS spokesman, Ian Perry, said: Last weeks interest rate freeze will mean that they housing market will maintain its current positive momentum.
Would-be-buyers have been encourages by a strong economic performance, but additional rises in interest rates before the end of the year, could deter buyers as more pressure builds on personal finances.
The price boom continued in the South East and London as the City economy strengthened and confidence returned following the stock market correction in May.
Prices in the North continued to rise and in East Anglia, prices surged from a near standstill. Moderate rises were recorded in the South West and Yorkshire while in Wales prices have started to build momentum.
Perry said: Further rises in house prices will prevent entry into the market. With accessibility 300 per cent worse than 10 years ago, first-time buyers will continue to struggle.
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